There's no denying the use and need for incredible amounts of cobalt in the current and developing technologies.
The price drop in cobalt has absolutely helped cobalt become a staple in these technologies.
The multi national companies pumping billions into developing them do not want to chop and change constantly. They have now found their way forward and want to get on with the job. This means lithium and cobalt are firmly in the equation.
If you think these guys are all sitting on their hands and have nothing to do with the commodity prices then you are very naive to say the least.
Cobalt is a necessity to the modern world moving forward so it's not as if it's price will continue to drop as our need for it increases.
If that were the case then we all should have been pumping fuel into our cars for pennies for years. It's not as if oil is so rare that we've only found it in a couple of isolated spots and could only pump out small quantities at a time.
The oil companies could have multiplied their output at any time but it's not in their best interest. So the the market has cycles.
And if you think the companies owning the resources are suffering when there's a drop think again. These guys are a step ahead of the game. They are profiting on the way up and on the way down (and setting themselves for the next spike).
Cobalt has been in a down cycle for the past year but just as other commodities of great need/value to society the cycle will end and the price will once again climb.
Those with more than a short term view can see this and are stocking up while prices are ridiculously low.
The markets are the markets. Commodities cycle up and down. Hopefully you all get your fill at the low end as once the tide turns it'll be rising pretty quick...
CLA Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
(20min delay)
